Some respite after last week's hiccup: Angel Broking
Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Last week, finally the brakes were applied on the recent euphoria on the back of geopolitical concerns with respect to the India-China clash at the border and to make it worse, US markets started correcting sharply after a strong gravity defying move in the last couple of months. All these factors triggered profit booking in our market and left us with some uncertainty at the end of the previous week. Fortunately, no escalation was seen over the last weekend and during the week also. Hence, some respite was seen in the latter half to reclaim the 11450 mark.
In the week gone by, no further damage done after a previous week's hiccup. However, the overall intra-week range was extremely small and barring one or two days, there was no major activity seen in indices. In our sense, one should still continue with a slightly cautious stance because the uncertainty is still looming over and till the time, we do not get clarity with respect to all these developments, better to stay light with a stock specific approach. As far as levels are concerned, 11550-11650 are likely to act as immediate hurdles; whereas on the lower side, 11350-11200 would be seen as a key support zone.
This week the majority of the gains were contributed by the stellar move in RELIANCE towards the fag end and IT stocks too chip in. At this juncture, the banking index is clearly underperforming and is placed around the crucial junction. We are observing a cluster of support around 22200-22000 and till the time it is defended, we can expect some recovery in the market. However, if it fails to hold this, the Nifty can easily slide below the key support of 11200. So, one should keep a close eye on all these possibilities and should position accordingly."